FTB Self employed

Dogmad29

Hi guys, I have been buried in this forum for a while now and have took advice from some of the threads already on here.
Me and my partner are first time buyers with a 10% deposit for our dream house of £125000.
Now here comes the nitty gritty
I am a sole trader with 3 years accounts. The first year wasnt very good at £3000, 2nd year @10000 and 3rd year at 11000 ( would of been higher but i bought a van) I am a dog walker/Groomer.

The complicated bit.
My partner is in a partnership with his dad in their haulage company. They have kept his earnings down for the 2 years previous to this one. They have both been at 8000. This last year we decided we were ready to buy a house so his brother (accountant) has been able to make his wage look better. He could earn 25000 and put that on his sa302 form but they would of had a big tax bill. So His mum and dad have a coach company in which my partner works for them also and on speaking to our mortgage advisor she said to employ him in this business. We really didn't know what we were getting into and on speaking to several people this seemed the sensible option. So On his sa302 form he had 14000 from the partnership. Employed wage is 13000. Only to then find nobody will accept his family wage and have had 2 applications get to the underwriters to be turned away. one is santander and the other halifax.
Santander want to wait 6months to make sure it is sustainable.
Halifax initially accepted it, it went to the underwriters, they declined but asked to see the accounts to see if we could salvage something, the snag - the accounts are in deficit by 3000 as they sold a wagon and a trailer and the depreciation has brought the figure right down. Halifax then accepted subject to valuation last monday, The mortgage advisor was on holiday last week so we had fingers crossed for the valuation which was yesterday, to find out once the mortgage advisor had read her emails they declined it last tuesday but still went ahead with the valuation. I feel totally wiped out by this whole process. Stressed doesn't come close to how we are feeling.
Now we don't know where to go and our mortgage advisor i have realised doesn't know anything! We have paid her too! This is our second one as the first was equally as bad.
Deflated, Stressed and now feel we have hit a brick wall.... :mad::(

kingstreet

Dogmad29 wrote: »

Hi guys, I have been buried in this forum for a while now and have took advice from some of the threads already on here.
Me and my partner are first time buyers with a 10% deposit for our dream house of £125000.
Now here comes the nitty gritty
I am a sole trader with 3 years accounts. The first year wasnt very good at £3000, 2nd year @10000 and 3rd year at 11000 ( would of been higher but i bought a van) I am a dog walker/Groomer.

The complicated bit.
My partner is in a partnership with his dad in their haulage company. They have kept his earnings down for the 2 years previous to this one. They have both been at 8000. This last year we decided we were ready to buy a house so his brother (accountant) has been able to make his wage look better. He could earn 25000 and put that on his sa302 form but they would of had a big tax bill. So His mum and dad have a coach company in which my partner works for them also and on speaking to our mortgage advisor she said to employ him in this business. We really didn't know what we were getting into and on speaking to several people this seemed the sensible option. So On his sa302 form he had 14000 from the partnership. Employed wage is 13000. Only to then find nobody will accept his family wage and have had 2 applications get to the underwriters to be turned away. one is santander and the other halifax.
Santander want to wait 6months to make sure it is sustainable.
Halifax initially accepted it, it went to the underwriters, they declined but asked to see the accounts to see if we could salvage something, the snag - the accounts are in deficit by 3000 as they sold a wagon and a trailer and the depreciation has brought the figure right down. Halifax then accepted subject to valuation last monday, The mortgage advisor was on holiday last week so we had fingers crossed for the valuation which was yesterday, to find out once the mortgage advisor had read her emails they declined it last tuesday but still went ahead with the valuation. I feel totally wiped out by this whole process. Stressed doesn't come close to how we are feeling.
Now we don't know where to go and our mortgage advisor i have realised doesn't know anything! We have paid her too! This is our second one as the first was equally as bad.
Deflated, Stressed and now feel we have hit a brick wall.... :mad::(

I stopped reading at that point as I knew what was coming.

Sorry, not much to suggest other than trying to find a broker who will actually tell you if something isn't possible, rather than try to manufacture a solution which involves deception.

Dogmad29

So would we be better if we unemployed him in the family business and made his sa302 better?

kingstreet

I'm sorry I'm not making any suggestions other than to find another broker. There is no way any broker should be telling you what to do with employment/self-employment to alter the result.

amnblog

If your fortunate you will not already be tagged as submitting false information.

A broker that tells you what you 'should' be earning or 'how' you should be earning it, is shooting you both in the foot.

A broker that tells you the answer is to start paying yourself a salary is also an idiot.